As blockchain uses public ledger which can resist duplicate transactions by monitoring each transcations. With the decentralized digital system , blockchain can verify the authenication of customers, policies and transactions by maintaining historical records.It creates a complexity for hackers to steal data .
Third - Party Transcation
Blockchain reduces the amount of third-party transactions , claims and administrative costs . Blockchain helps for automated verification of claims and payment details from third party. With the use of blockchain , all insurance companies can easily retrieve past claims and transactions that are recorded. This furnishes trust among insurer and policy holder .
Blockchain can provide accuracte reserve calculation details on currently processing contracts , in insurance companies. This will be so useful for P& C insurers who is need of information about how much money is available as they pay claims. Thus Blockchain prevents them from specific risks.
The personalized smart contracts in insurance industry replaces physical paper documents and activities by smart contracts that conncets real-time records. This easily initiate claims and payments with high accuracy which inturns reduces money and time.
Blockchain can store,manage and share large amount of data . The use of blockchain can store large amount of static data /records without central authority and the data can be viewed by all individuals connected in blockchain.This kind of streamlined records can make transactions more accurate and risk assessment.